By GB News (Politics) | Created at 2026-09-16 06:56:41 | Updated at 2026-09-19 13:05:58
3 days ago
Andy Burnham is scrambling to fill a £10billion hole in the public purse as Britons are warned that tax rises or spending cuts are "inevitable".
Ahead of the ever-looming Budget next month, Whitehall's money watchdog, the Office for Budget Responsibility, is currently examining the state of the UK economy.
Their assessment is then used to work out the price of debt interest, which then has a major impact on the Chancellor's plans.
A top Whitehall source said the timing of John Healey's inaugural Budget was "hugely challenging" due to rising pressures from the Iran war.
Now, leading financial experts have warned that the tax rises - or spending cuts - will be "inevitable" as Mr Healey looks for ways to expand his headroom, which is said to have dropped from £23billion to a mere £5billion.
In the public eye, the Chancellor has informed markets he would commit to a "buffer", although he is yet to expand on this promise.
The Budget will be held on October 28.
FOLLOW ALONG FOR LIVE UPDATES THROUGHOUT THE DAY...
Inflation rises AGAIN as CPI rate hits 3.1% in cost of living blow
The UK's consumer price index (CPI) inflation rate for 12 months to August jumped to 3.1 per cent per cent, according to the latest data from the Office for National Statistics (ONS).
This is a slight jump from July's 2.9 per cent rate and is attributed to a rise in transport costs, particularly motor fuels, towards the end of summer.
Today's figure comes as a blow to Prime Minister Andy Burnham and Chancellor John Healey ahead of the latter's Budget statement next month on October 28.
It also comes the day before the Bank of England's next base rate update, with many analysts pricing in four hikes to the cost of borrowing over the next 12 months.
Andy Burnham to face Donald Trump in person for first time amid Falklands and Northern Ireland rows
Andy Burnham is set to face Donald Trump in person for the first time next week amid recent rows over the Falkland Islands and Northern Ireland.
The face-to-face talks are expected to take place on Tuesday while both leaders are in attendance at the United Nations General Assembly in New York.
Although the pair have not met in person, they spoke over the phone shortly after the Prime Minister replaced Sir Keir Starmer at No10 in July.
The US President described the call as "interesting", and revealed that the two discussed North Sea oil, trade, the military alliance and the Strait of Hormuz.
BRITAIN'S WORK (FROM HOME) FORCE: Labour to make remote working even easier with pro-union 'shirkers' charter'
Labour has pledged to make it even easier to work from home by tightening rules around employers' ability to reject workers' requests.
First Secretary of State Louise Haigh told delegates at the Trade Unions Congress (TUC) in Brighton that firms would need to show they had "properly" weighed up an employee's application before turning it down in future.
"If an employer wants to turn down a request, they will have to sit down with their employee, properly consider and explain why," she said.
"There's kids to pick up. Parents to look after. Families who rely on us at short notice. And sometimes, a little bit of flexibility can make all the difference."
Labour is believed to be planning further legislation under the Employment Rights Act to bolster workers' protections while "flexible working".
